9. Institutional arrangements that provide for competition from alternative suppliers help the granting agency to police the

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9. Institutional arrangements that provide for competition from alternative suppliers help the granting agency to police the operational efficiency of bureaus. Granting agencies may be able to reduce the mono poly power of bureaus by

(a) contracting out the provision of various public services to private producers,

(b) enabling private suppliers to compete on equal footing with public sector suppliers, and

(c) expanding the number of public sector producers through decentralization and allocation of a function to several public sector suppliers.

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Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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